accommodation paper

a bill of exchange cosigned by one party as maker, acceptor, or endorser without requiring collateral or a fee, in order to lend his or her credit reputation to the second party

accommodation-paper

Noun

(plural accommodation papers)

(commerce, law) A note, bill, or draft accepted or endorsed by a person to allow a second person to raise money or obtain credit.

accommodation paper - Legal Definition

n

A negotiable instrument that one co-signs as a surety as an accommodation to
another party, who remains primarily liable without receiving any benefit,
compensation, or consideration. See also accommodation
party.